Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
The Silver Streak

The Silver Streak

DailyFX, Research

Share:

Silver continues its meteoric rise today on the eve of a potential government shutdown in the United States. Political pressures and international instability have historically driven demand for metals as market participants continue to look for safe havens to park their capital. We can see on our daily chart below that our trend for silver is gaining fresh legs and reaching for new highs over the $40 an Oz.

One generally overlooked fundamental fact is silvers use as an industrial metal .Wanted for its conductive properties, silver can be found in many electrical systems and electronic products. As consumption in emerging markets such as India and China rises, look for demand of silver along with its price to increase.

Price Action

Taking price in to a 4hr chart, we can observe the sheer force behind the latest XAG/USD bull run. Starting at a low of $33.63 on March 16, 2011 and rallying through today’s April 8, 2011 high of $40.29, silver has rallied a staggering 31% for this time period. Sellers of silver have clearly been forced to the sideline as the metal continues to print higher highs and repeatedly failed to break our well established trend.

Trading Opportunity

Our strong uptrend will give directional traders an opportunity to buy on dips and join the current uptrend. Traders can look to establish fresh buy orders along our trend line near $39.50 an oz. Stops should be placed below our trend line near the $39.00 figure. Using a 1:2 Risk/Reward ratio, limits should be targeting $40.50 or higher for a minimum gain of $1.00 an oz.

Walker England contributes to the Instructor Trading Tips articles.

To receive more timely notifications on his reports, email instructor@dailyfx.com to be added to the distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES